This past week saw traders buying the dip (well if you can call it a dip). If you look at the count of bullish stocks on the Twitter stream you can see that traders were buying more stocks as the market reacted to resistance near the 2300 level on the S&P 500 Index (SPX). This is a very good sign for the market going forward.
You can see the stocks that are being bought by looking at the most bullish list. You can use this bullish sentiment list to sort by timeframe.
Another positive sign comes from 7 day momentum for SPX. It is still confirming the uptrend in price. If the sentiment uptrend stays intact the market should be able to break above 2300.
One note of worry is that traders aren’t calling for prices above 2300 on SPX. The hope from the last attempt to break higher has disappeared. With support at building a fairly solid line at 2250 we may be seeing the first signs of a rangebound market (as traders go into wait and see mode).
Sentiment for the market is still showing positive signs. We’ve had the pull back we predicted in mid January so now the market should be able to break 2300. The only fly in the ointment is the lack of tweets calling for higher prices.